Investors can learn much by following the behavior of company insiders when it comes to how they handle positions in their own companies. People may sell for many reasons (buying a house, paying for college, or getting ready for retirement). They generally only buy for one reason: they think they will make more money.
The chief executive officer is often one of the largest and best-informed shareholders in any corporation. Let’s see whether ZoomInfo Technologies Inc. (NASDAQ: ZI) CEO Henry Schuck has been increasing or decreasing his shares over the past year and whether he knows something we don’t.
What You Need to Know About ZoomInfo
ZoomInfo Technologies provides go-to-market intelligence and an engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users do the following:
- Identify target customers and decision-makers.
- Obtain continually updated predictive lead and company scoring.
- Monitor buying signals and other attributes of target companies.
- Craft messages.
- Engage through automated sales tools.
- Track progress through the deal cycle.
The company serves enterprises, mid-market companies, and small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, retail, media and internet, transportation, education, hospitality, and real estate.
ZoomInfo Technologies was founded in 2007 and is headquartered in Vancouver, Washington. That is also the home of BowFlex Inc. (NYSE: BFX). Competitors of ZoomInfo include HubSpot Inc. (NYSE: HUBS). Schuck has been chief executive since he founded the company in 2007. He is also the chair of the board of directors.
The company reported annual revenue of more than $1.2 billion, and its market capitalization is about $5.9 billion. The share price is more than 47% lower than it was a year ago, while the Nasdaq has gained over 29% in that time. The stock has retreated about 17% since the beginning of the year.
How ZoomInfo’s CEO Is Trading
One year ago, Schuck owned nearly 19.1 million shares, worth about $795.4 million. Today, he owns over 13.7 million shares, which is a stake of about 3.5%. Between that 5.3 million share decrease in the total and the dwindling share price, the value of the stake has plunged over 72.6% to around $218.2 million.
| Shares a Year Ago | Shares Today | % Change |
| 19,093,382 | 13,737,729 | −28.05% |
CEO Henry Schuck could have sold for a variety of reasons, and we may never know the truth. However, the share price has been in retreat for the past couple of years. It has been a tough climate for software companies in general, and ZoomInfo also faces the challenge of about $1 billion of long-term debt. The company may have to wait for a stronger economy before it can turn around. If so, who wouldn’t want to take some cash while they wait? Could Schuck be poised to buy low before the stock takes off again?
Another shareholder to watch is Kirk Norman Brown. His more than 15.0 million shares are worth over $231 million, which makes him a beneficial owner. (These 19 executives pay themselves over $150 million a year.)
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